QIP042: Add Tidal Insurance Coverage for QiDao

Adding safety measures has been a top priority for QiDao. We are excited to share a proposal from Tidal Finance to add insurance coverage for the project as well as our end users.

Tidal is a Polygon-native insurance protocol that helps other projects protect against smart contract exploitations. Tidal will help us to bootstrap USDC as insurance collateral on its platform. USDC depositors will earn the premium fees from our payment, as well as TIDAL tokens.

Since Tidal is also a Polygon ecosystem assigned insurance provider, the Polygon ecosystem fund is willing to contribute additional MATIC tokens (10k USD value) to incentivize a high quality native projects’ reserve pool. Mai.Finance would be able to receive this extra benefit.

Once our insurance reserve pool is launched, we can subscribe to the coverage plan by setting up the desired coverage amount. No upfront costs or long term contracts required, and the coverage plan is automatically extended on a weekly basis, as long as there is enough balance in the payment account.

Payment can be made in USDC or QI, on Polygon, offering a useful utility for QI token holders.

Partnership details

Tidal will incentivize Mai Finance’s reserve pool by allocating 475,000 TIDAL weekly (~ 4,500 USD value at current price). The allocation could gradually go down as more projects get onboarded, but the average weekly incentive would be 300,000 TIDAL for at least 6 months. (the reward will continue after 6 months also, will have a more accurate estimate as we get closer)

Additionally, ~600 MATIC tokens (1,000 USD value at current price) will be used to incentivize MAI’s reserve pool for 10 weeks.

We can start with a 1 million coverage plan. Cost for 1 million is 5% yearly, 0.1% weekly, $961 per week, paid from our treasury. At the same time, $500,000 coverage is available for our end users to purchase with either USDC or QI.

No long term commitments are needed, the coverage amount can be adjusted up or down, or canceled at any time, depending on our community feedback and adoption.

The insurance covers hacks that happen to QiDao smart contracts, but does not cover the loss due to a 3rd party protocol.

Link to Tidal: https://tidal.finance/

Motivation

• Increase user safety.
• Drive user growth and TVL.
• Add token utility.

Quorum Standards

The option with the most votes will be adopted.

Options

• Add Tidal insurance coverage
• Further discussion needed